Well, what do you know? Sam Bankman Fraud who's been released on bail to spend time with Mommy and Daddy in Northern California apparently wasn't the Jerome Powell that people thought he was. This should be obvious now after the collapse of the fraud FTX But Sam Bankman Freed was considered a hero when he came and bought Robin Hood stock back in May of 2022.. now Robin Hood has frequently been trading for near their cash balance. As investors actually look at Robinhood and think, oh my gosh, it's possible Robin Hood could light more money on fire.

even though they're trading close to their cash balance, they could light more money on fire and lose even more investor capital. And the stock has been through some heck of a roller coaster, moving from somewhere around seven bucks to as low as six dollars and 81 cents in July trying to move all the way up to about 12 and then right back to 771 where it trades today. An insane roller coaster for Robin Hood stock. But one of the reasons people thought Robin Hood was quite fascinating was because Sam Begman Freed bought a lot of Robin Hood shares.

He bought over 500 million dollars worth of Robin Hood in May of 2022, taking a 7.6 stake in Robin Hood. Yet unfortunately for Mr Sam Bankman Freed also known as Sandbankment Fraud, it seems like he wasn't much of a Jerome Powell because see: Jerome Powell can print money without borrowing it and getting margin called. Unfortunately, Sam Bankman Freed actually ended up borrowing money from Alameda to finance his purchase of Robin Hood shares. and now the bankrupt firm Blackfied is suing Sam Bankman Freed for his Robin Hood shares, alleging that Block Fight is owed the shares that uh, that that Sam Beekman Freed bought because those shares were pledged to block Phi to guarantee that Alameda would follow through on the deal with Block Five.

Now, this is a really interesting twist, because it could put substantial selling pressure on Robinhood Because obviously, if Blockfi is going through bankruptcy and they're trying to survive that bankruptcy, if they can claw Sam Bankman Freed's Robin Hood shares, which is probably the only net worth Sandbagmatfried has left if he could. If if a Blockfi can take those shares, it's very likely that Blockify would dump those shares on the market. Probably not through a Robin Hood kind of platform, probably through a Wall Street Block trade. But the point is, there'd be a substantial increase in the amount of share is available for sale for Robin Hood and you can see a substantial shift down in Robinhood share price.

Now that could be good news for Block Fi, as that money would then go to try to help bail Block Fight out. But this is a very interesting allegation that all of a sudden you have Blockify suggesting that Sam Bankman Freed borrowed the money from Alameda via four personal promissory notes in order for him to buy shares of Robin Hood. Now when we look at the fundamentals of Robin Hood, they're the biggest red flag that you have is that Robin Hood makes money from Trading right? And when Robin Hood makes money from Trading, it wants to see people trade more. Problem is, when you go into a recession, people tend to do one of two things: They capitulate, sell out, and sit on the sidelines.

and usually they miss the recovery or they huddle stop trading altogether because they're frustrated by the market. They stick their heads in the sand maybe occasionally add by buying the dip potentially by using Diversified actively managed ETFs or index funds or whatever. and you don't actually see much trading activity. So you have some really big red flags for trading for investing in brokerages like Robinhood.

So from a fundamental point of view, that's a big concern. Now some other things that you have here is uh, well and I do want to see you or say here, you could see transactions plummeting right. Look at this transactions down 22.1 percent or transaction Revenue down 22.1 percent from the three months ending September 30th, 2021 to 2022. it's a big hit.

now. they are seeing a nice move up in interest revenues. However, Robin Hood is kind of playing a race to the top game with to compete against companies like Sofi and Wealth Front because Robin Hood is now offering to pay somewhere over 3.7 I think it actually is 3.75 on your cash that you have deposited with Robinhood and I think Wealthfront is now a little over four percent. So you've got a lot of big yield opportunities you're fighting with, but that's going to, in my opinion, decrease the net interest revenues for Robinhood as they start coming out with these new products pitching.

Hey, we're gonna offer you a larger uh, interest rate on your savings with Robinhood Now remember Vlad Tennev actually came on the channel here to pitch that they were going to offer a higher yield on their interest bearing accounts, so their checking accounts over at Robinhood. Basically, uh and uh, they announced this on September 23rd, which you'll notice September 23rd is actually a week before the end of this quarter. So in my opinion, the net interest revenues for Robinhood are probably going to go down because they went from paying virtually nothing to paying 3.75 percent. So I would not be surprised to see their transaction revenues plummet and their net interest revenues plummet.

Now the good news for Robinhood is they are trying to cut spending. Look at this, their technology and development sector they used. They spent 679 million in 2021 in the third quarter, only 185 here in the third quarter. they're still losing money, but only 20 cents Could you imagine? Robin Hood At Profitability I Don't know when that net interest? Revenue goes down, probably not.

but otherwise, they almost got close to profitability here. and that's why I wrote imagine: Robin Hood At Profitability. but again, this is a big red flag because of those net interest revenues I Think there are going to come plummeting down? So uh, again, you'd have to cut substantially here and you'd still be sitting in in a negative situation. Unfortunately, these are some notes that I took in my course member live stream.

With course members, we often do fundamental analysis. If you want to join in those fun fundamental analysis, check out the programs on building your wealth link down below. There's a coupon code expiring on the 27th of December including the shadow Kevin for a Day Option. But anyway, initially I believe that in terms of user growth and I still believe this.

the 3.75 will help a lot. It's kind of like free marketing, but unfortunately that free marketing is going to come with the downside that their net interest revenue is going to decline. So even if you were able to cut a little bit more expenses over here and you were able to bring them to profitability which you're not exactly close to that right now, right? You have 174 million dollars of cuts you have to do. That's like even if you had zero net interest Revenue you, you'd still be in a or I'm sorry.

Let me put it this way, if you doubled your net interest Revenue you would still be at a loss at Revenue. So I I don't think you're gonna or you know, a loss of income. so I don't think you're going to be at profitability anytime soon for Robinhood So unfortunately, when it comes to Robinhood stock I think you have quite a few negative cash fabulous ahead of you. a I think that Sam Bakeman fraud Shares are probably going to get Plum pummeled onto the market through bankruptcy hearings and you could see Robin Hood go to three dollars and fifty cents or potentially even less I Hate to say it, but but that selling pressure is going to be huge.

On top of that, in the next earnings report, you're probably going to see net interest revenues plummet potentially as low as uh I I would guess a lower level than what we had over here when they were at 63 million I Hate to say, but it could probably go below that. It would be odd for it to go up because I don't know how they would be paying out while still farming these these high yields. It would really be dependent on users just for some reason not signing up for those higher yields. Of course that's Robin Hood's play is that more people sign up for those higher yields.

they pay five bucks a month and then maybe they'll start making money off of the five bucks a month. But let's be real, the five bucks a month belongs over here in the other section of Revenue and the other section of Revenue is on a downtrend. They were at 35 mil in other rev. Now they're sitting at 25.

So it's just looking a little gloomy for Tesla or not. Tesla Tesla's looking really gloomy today. That sucker's down like 11. It's just looking really gloomy for Robin Hood from a fundamental point of view, whereas things are actually fundamentally looking great for Tesla, it's just going through hell.

That's all. I That's that's all I could describe. That is it is the most amount of paper handing ever. Anyway, luck out there.

hope you appreciate some fundamentals because one day they'll come true. #not guaranteed my opinion only Thanks bye.